Kraken Expands Tokenized Stocks to Ethereum Mainnet, Adds Over 60 Assets to DeFi Ecosystem

Kraken has expanded its tokenized equities product, xStocks, to the Ethereum mainnet, introducing over 60 assets as ERC-20 tokens. This move follows launches on Solana, BNB Chain, and TRON, with $3.5B in trading volume generated so far. xStocks allows for fractional ownership and round-the-clock access to stocks, and the Ethereum expansion aims to make traditional stocks interoperable and programmable within blockchain systems.

Kraken, a prominent crypto exchange, has announced the expansion of its tokenized equities product, xStocks, to the Ethereum mainnet. This move follows earlier launches on Solana, BNB Chain, and TRON, with a cumulative trading volume of over $3.5 billion generated so far [1].

The Ethereum launch introduces over 60 assets as ERC-20 tokens, enabling direct interaction and composability with existing DeFi protocols on Ethereum. This integration allows eligible Kraken clients to deposit and withdraw xStocks directly on Ethereum, where they will exist as ERC-20 tokens fully collateralized 1:1 by underlying equities [1].

xStocks offers fractional ownership and round-the-clock access to stocks, making traditional financial instruments interoperable and programmable within blockchain systems. The Ethereum expansion aims to leverage the network's extensive DeFi infrastructure and smart contract capabilities to enhance accessibility and usability [1].

This initiative is part of a broader trend of bringing traditional financial instruments onto blockchain rails, also known as tokenization of real-world assets. Crypto exchanges like Gemini and Robinhood have already introduced tokenized U.S. stocks for EU users, but concerns such as limited shareholder rights and fragmented regulations persist [1].

By expanding to Ethereum, Kraken aims to capitalize on the network's widespread adoption and DeFi ecosystem. Ethereum's position as the largest smart contract network gives xStocks immediate reach across thousands of decentralized applications, potentially driving increased adoption and liquidity [2].

The rollout on Ethereum follows earlier xStocks launches on Solana, BNB Chain, and TRON, which have collectively generated over $3.5 billion in trading volume. Kraken co-CEO Arjun Sethi stated, "Our multi-chain strategy is deliberate. It ensures tokenized equities are accessible across ecosystems, portable between wallets and protocols, and composable within the applications users already trust. Ethereum is the next logical step" [1].

This move comes as momentum grows for bringing traditional financial instruments, including equities, onto blockchain rails. The Ethereum expansion of xStocks is a significant development in the ongoing effort to integrate blockchain technology with traditional finance, potentially unlocking new opportunities for investors and financial institutions alike.

References:
[1] https://www.coindesk.com/business/2025/09/02/kraken-backed-bring-tokenized-equities-offering-to-ethereum-mainnet
[2] https://en.coinotag.com/breakingnews/kraken-and-backed-bring-xstocks-to-ethereum-mainnet-as-erc-20-tokens-enabling-defi-access/